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ENGINEERING ECONOMICS

Engineering Economics
The wages of supervisors and material handlers are charged as:

Direct labour cost
Over head
None of these
Indirect labour cost

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Engineering Economics
In computing depreciation of an equipment, which of the following represents the first cost?

Installation expenses
The original purchase price and freight charges
All of these
Initial taxes and permit fees

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
10 years
7 eyars
9 years

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Engineering Economics
The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

None of these
Conceptual estimate
Definitive estimate
Probabilistic estimate

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Functional depreciation
Demand depreciation
Physical depreciation
Design depreciation

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